- brought to the attention of the Committee the position in respect of Revenue and Capital expenditure for the period 1st April 2013 to 31st July 2013 regarding those revenue and capital budgets which formed this Committee’s remit

- updated Committee on the progress made in delivering the Social Services Budget Programme.

The current forecast for Social Services was an overspend at year end of £673k. This was following the deduction of savings identified for the year of £2.04m.

Children and Young People’s Services – the main issue here was the need to manage continued pressure on the Children’s Placement Budget. The current projected outturn for the jointly funded Residential Placements budget for Looked After Children was an overspend of £232k, whilst the previously reported position at the end of May was breakeven. The reason for this increase was that one young person moved from a foster placement into a residential placement (£129k) was one young person, who was previously supported at home, became looked after and was accommodated in a residential placement (£128k). It was anticipated currently that this level of overspend could be offset by underspends elsewhere within Children’s Services and, therefore, a breakeven position was anticipated.

Adult Services – the major issue was the continuing pressure on Community Care Packages, the Division’s most volatile budget and one most dependent upon levels of service demand which were not within the Council’s direct control. At present, the projected year end position was an overspend of £1.429m, but this was after the reduction in budget to accommodate the savings target for the year of £685k. Any additional funding received from Welsh Government for the implementation of the First Steps initiatives, which resulted in the introduction of the £50 cap for non residential services, would reduce this overspend. Actions were being taken to review all processes and to address this shortfall. There were potential underspends elsewhere in Adult Services of around £463k which would be used to offset this position resulting in an overall projected overspend at year end of £966k.

Areas of savings had been identified this year which were £293k over the required target. This could be used to offset the overspend on Adult Services, resulting in a projected overspend for Social Services at year end of £673k.

Appendix 2 to the report detailed financial progress on the Capital Programme as at 31st July 2013.

With regard to the Social Services Budget Programme Update, the Directorate was currently required to find savings totalling £6.0m by the end of 2016/17. Savings totalling £6.189m had currently been identified. The surplus would be used to mitigate any additional savings to be found in future years.

The Social Services Directorate was committed to achieving a balanced budget. The corporate programme board and project teams overseeing the plan would continue to develop it further and ensure delivery and progress. Progress updates would be reported as part of the overall financial monitoring report for the Directorate.

The Director advised that the Welsh Government was considering a recommendation as to how additional funding to compensate for lost income because of the £50 cap on charging for non-residential services could be awarded. On the basis of present proposals, the Vale’s share would be £118k, although at this point the formal decision could not be known and additional representations have been made by the Leader to relevant members of the Welsh Government Cabinet.

In referring to Project Reference A3 of Appendix 4 to the report Targeted Reduction in Specific Care Package Budgets, it was proposed that this issue be referred to Cabinet.

Questions were asked regarding Project Reference A6 of Appendix 4 to the report Residential Services – Current Contract with Hafod Homes and Committee were informed that a meeting with the Chief Executive of Hafod was to be held.

RECOMMENDED –

(1) T H A T the position with regard to the 2013/14 Revenue and Capital monitoring be noted.

(2) T H A T the progress made on the Social Services Budget Programme be noted and referred to Cabinet for information.

Reasons for recommendations

(1) That Members are aware of the position with regard to the 2013/14 revenue and capital monitoring relevant to the Scrutiny Committee.

(2) That Scrutiny and Cabinet Members are aware of the progress made to date on the Social Services Budget Programme.